Can Carbones Pizzeria and its affiliates operate similar or identical businesses outside of a Carbones Pizzeria franchisee's Franchisee Territory under any trademarks, even if the businesses compete with the franchisee's Restaurant?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as you are in compliance with your Franchise Agreement with us we will not establish, nor will we grant a third party the right to establish a restaurant operating under the Carbone's Pizza or Carbone's Pizzeria name, the physical premises of which is in your Franchisee Territory. Other than these limitations there are no prohibitions on us in your Franchisee Territory. For example, we and our affiliates can operate and allow others to operate similar or identical businesses within the Franchisee Territory if such businesses do not operate under the Carbone's Pizza or Carbone's Pizzeria names, and to operate similar or identical business outside of your Franchisee Territory under any trademarks even if the businesses compete with your Restaurant. We and our affiliates can also operate or allow others to operate businesses or other ventures inside the Franchisee Territory under any trademarks, including the Carbone's Pizza or Carbone's Pizzeria marks so long as the businesses are not competitive with your Restaurant. We and our affiliates can sell any products we or our affiliates provide to you for use in your Restaurant to any person, whether in or outside your Franchisee Territory. We and our affiliates can sell or grant third parties the right to sell goods and services competitive with those sold by your Restaurant under any trademarks, including Carbone's Pizza and Carbone's Pizzeria marks, through other distribution channels including the Internet, catalog sales, telemarketing or other direct marketing, in and outside of your Franchisee Territory. We and our affiliates can also sell frozen pizzas and other frozen items, whether under our trademarks or other trademarks, to customers and resellers who may be located in your Franchisee Territory, which includes supermarkets and convenience stores. We and our affiliates can also acquire businesses in the Franchisee Territory that are similar to your Restaurant or sell our business whether through a sale of assets or stock to anyone, regardless whether they operate or franchise the operation of businesses similar to your Restaurant.
Source: Item 12 — TERRITORY (FDD pages 19–21)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, Carbones Pizzeria and its affiliates have broad rights to operate similar businesses, even in competition with a franchisee's restaurant. Specifically, Carbones Pizzeria can operate similar or identical businesses outside of a franchisee's territory under any trademarks, even if those businesses compete with the franchisee's Carbone's Pizzeria restaurant.
Within a franchisee's territory, Carbones Pizzeria and its affiliates can operate similar or identical businesses as long as they do not operate under the Carbone's Pizza or Carbone's Pizzeria names. They can also operate businesses under the Carbone's Pizza or Carbone's Pizzeria marks if those businesses are not competitive with the franchisee's restaurant. Carbones Pizzeria and its affiliates can sell any products they provide to the franchisee to anyone, whether inside or outside the franchisee's territory. They can also sell or grant third parties the right to sell goods and services competitive with those sold by the franchisee's restaurant under any trademarks, including the Carbone's Pizza and Carbone's Pizzeria marks, through other distribution channels like the Internet, catalog sales, telemarketing, or other direct marketing, both inside and outside the franchisee's territory.
Furthermore, Carbones Pizzeria and its affiliates can sell frozen pizzas and other frozen items, whether under their trademarks or other trademarks, to customers and resellers located in the franchisee's territory, including supermarkets and convenience stores. They can also acquire businesses in the franchisee's territory that are similar to the franchisee's restaurant or sell their business to anyone, regardless of whether they operate or franchise similar businesses. This extensive reservation of rights means that a Carbones Pizzeria franchisee faces significant potential competition from the franchisor and its affiliates, both within and outside of their designated territory.